Home Depot (HD) Offering Possible 16.01% Return Over the Next 3 Calendar Days

Home Depot's most recent trend suggests a bearish bias. One trading opportunity on Home Depot is a Bear Call Spread using a strike $195.00 short call and a strike $200.00 long call offers a potential 16.01% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $195.00 by expiration. The full premium credit of $0.69 would be kept by the premium seller. The risk of $4.31 would be incurred if the stock rose above the $200.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Home Depot is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Home Depot is bearish.

The RSI indicator is at 20.91 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Home Depot

Is Lowe’s Companies Inc. a Buy?
Sat, 13 Oct 2018 12:46:00 +0000
There are some good reasons to take a closer look at this underperforming business.

7 Growth Stocks That Will Pay You Cash, Too
Fri, 12 Oct 2018 18:49:49 +0000
Investors seeking out growth stocks often discard dividends as unimportant, but they really shouldn't. After all, there's no greater sign of a company's health than the regular, consistent payment of dividends. When the board of directors approves the payment of the quarterly dividend, it sends the unmistakable message that more cash is expected down the road. Thus, a focus on dividends can help you improve the quality of your growth portfolio. "We consider a reliable and growing dividend to be a major sign of a company's health," says Chase Robertson, principal of Houston-based RIA Robertson Wealth Management. "Limiting your pool of available stocks to dividend payers immediately improves the quality of the portfolio." Today, we will look at seven solid dividend-paying growth stocks. It's not unusual for growth stocks to return 20% or more per year when they're on a good run, so the dividends paid will be a small part of the total return. It's exceptionally rare for a true growth stock to sport a high dividend yield. Still, it's nice getting paid something in cold, hard cash. If anything, the dividend allows you to realize a small portion of your gains along the way without having to sell your shares. SEE ALSO: 53 Best Dividend Stocks for 2018 and Beyond

RH Defied the Market Trend, Rose ~10% on October 11
Fri, 12 Oct 2018 14:07:36 +0000
RH (RH) shares defied the general market trend and rose ~10% on October 11 following the company’s announcement to buyback shares worth $700 million. RH is expected to generate more than $260 million in cash flows in 2018. The company’s decision to announce the share buyback reflects Gary Friedman’s, RH’s chairman and CEO, view that the company’s shares are “undervalued.” Following the announcement, Stifel upgraded RH stock to “buy” from “hold” and raised the target price to $150 per share from $142.

Lowe's pledges $2M for Hurricane Michael relief efforts, doubling its storm aid in 2018
Thu, 11 Oct 2018 18:31:39 +0000
The Mooresville-based home-improvement chain announced Thursday that it is donating $2 million in relief aid in the wake of Hurricane Michael, including that $250,000 for the American Red Cross.

Walmart to pay $65 million to settle lawsuit over seating for cashiers
Thu, 11 Oct 2018 14:55:21 +0000
Walmart denied any wrongdoing in the nine-year-old case, which was scheduled to go to trial later this year, in a filing in federal court in San Francisco on Wednesday. In addition to the payout, the company said it would begin providing seating to its cashiers in California.

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